There’s a sense of déjà vu to Rockhopper Exploration’s (RKH) preliminary results. Although cash flow from Egyptian production again covered general and administrative costs in 2018, another year has passed without sanction of the Sea Lion project.
Investors have some progress to cheer. Since the year-end, front-end engineering design on the project has completed, letters of intent have been extended, contractors have agreed to pony up $400m (£305m), and a public consultation with the Falklands Islands threw up no "material objections".
However, with 12 months left before the discovery area licence expires, Rockhopper and operator Premier Oil are only just submitting their application for formal senior debt funding, and have pushed back a "project sanction decision" target until the end of 2019. One potential source of cash – a positive result from the Ombrina Mare arbitration with Italy – is unlikely to arrive until the autumn.
